Financial Statements(under Japanese GAAP)
February 9, 2018
Company nameIFIS JAPAN LTD.
Stock Exchange listing TSE
Code number7833
URL http://www.ifis.co.jp
Representative President
Kazuharu Osawa
ContactDirectorHiroki Osawa
TEL 81-(3)6825-1250
Scheduled date of annual
Scheduled start date ofMarch 23, 2018
March 26, 2018
shareholder’s meeting
dividend
Scheduled submission date
March 26, 2018of annual security report
Preparation of supplementary material on earnings：Yes
Holding of earnings performance review：Yes (for analysts)(Fractions less than ¥1 million have been omitted.)
1.Consolidated Financial Results for the Fiscal Year Ended December 31, 2017(January 1, 2017 toDecember 31, 2017)(1) Consolidated Operating Results(Percentages figure represent changes from same period of previous year.)Net sales
Operating income
Ordinary income
Net income％¥ million

Fiscal year ended
December 2017
4,916
7.0
Fiscal year ended
December 2016
4,596
8.4
(Note)
Comprehensiveincome (loss)

Net income
per share％¥ million

683

16.1684％¥ million△15.5433

16.2588
1.05920.3373△2.0
Fiscal year ended ¥435 million Fiscal year ended ¥368 million
December 2017(18.1%) December 2016(△2.4%)
Diluted net
Return on
Profit margin on
income per Return on equity
assetssalesshare¥％¥

Fiscal year ended－December 2017
44.92
14.9
Fiscal year ended
December 2016
38.66
－
14.5
(Reference) Earnings on
Fiscal year ended ¥1 million
investments in equity- December 2017
method affiliates(2) Consolidated Financial Position
Total assets¥ million

Fiscal year ended
December 2017
Fiscal year ended
December 2016
(Reference) Equity％¥ million

Net assets％

18.2
17.8
Fiscal year ended
December 2016

Equity ratio％

13.9
12.8
¥3million

Net assets per share％¥ million

¥

3,916

3,107

79.3

321.65

3,614

2,734

75.6

283.04

Fiscal year ended
December 2016

¥2,734 million

Fiscal year ended
December 2017

¥3,107 million(3) Cash FlowsNet cash provided by Net cash provided by Net cash provided by Closing balance of(used in) operating(used in) investment (used in) financing
cash and cash
activities
activities
activities
equivalents¥ million¥ million¥ million¥ million

Fiscal year ended
December 2017536△46△622,398

Fiscal year ended
December 2016352△309△531,971

12. Dividends
Dividend Dividends
Total cash
payouton equity
dividends ratio(consoli (consolidatedated)d)Annual dividends

1st Qtr¥2nd Qtr¥

3rd Qtr Year-end¥¥Total¥¥million％％

Fiscal year ended －December 2016－

000 －－

650

650

62

16.8

2.4

Fiscal year ended
December 2017 －Fiscal year ending
December 2018 －(Estimated)－

000 －－

700

700

67

15.6

2.3－

000 －－

800

800－－－

3. Projected Results for Fiscal year 2018(January 1 to December 31, 2018)(Percentages figure represent changes from same period of previous year.)

OperatingincomeNet sales％¥ million

Ordinaryincome％¥ million％¥ million

Net income
per share

Net income％¥ million¥First half ending
Jun. 2018

2,500

1.4360△4.2360

4.4

228

6.3

23.63

Fiscal year ending
Dec. 2018

5,250

6.8

740

8.3

740

8.1

469

8.2

48.58

＊Notes(1) Significant changes in subsidiaries during the period (changes in specified subsidiaries resulting in thechange in consolidation scope): None
(2) Changes in accounting policies, estimates, and restatements:
1) Changes in accounting policies in accordance with revisions of accounting standards: None
2) Changes other than 1) above: None
3) Changes in accounting estimates: None
4) Restatements: None
(3) Number of shares outstanding (common stock)
Number of shares
outstanding at term
Fiscal year ended
Fiscal year ended
10,242,000 shares
10,242,000 shares
1)end (including treasuryDecember 2017
December 2016stock)
Number of shares ofFiscal year ended
Fiscal year ended
582,237 shares582,237 shares
2) treasury stock at term
December 2017
December 2016end
Average number of
Fiscal year ended
Fiscal year ended
9,659,763 shares
9,659,763 shares3) shares during theDecember 2017
December 2016
period2

(Reference) Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Fiscal Year Ended December 31, 2017(January 1 to December
31, 2017)(1) Non-Consolidated Operating Results(Percentages figure represent changes from same period of previous year.)Net sales
Operating income
Ordinary income
Net income％¥ million％¥ million％¥ million％¥ million

Fiscal year ended
December 2017

3,042

△0.4506△0.9509△1.0346

2.7

Fiscal year ended
December 2016

3,053

6.4511

15.4

514

15.2

337

20.2

Net income per share
Fiscal year ended December 2017
Fiscal year ended December 2016(2)Non-Consolidated Financial Position
Total assets

Diluted net income per share
¥¥

35.85
34.92

－－Net assets¥ million

Equity ratio

Net assets per share％¥ million¥

Fiscal year ended
December 20173,050

2,626

86.1

271.89Fiscal year ended
December 2016

2,798

2,342

83.7

242.53Fiscal year ended
December 2016

¥2,342 million(Reference)

EquityFiscal year ended
December 2017

¥2,626 million

2. Non-Consolidated earnings forecasts for Fiscal year 2018(January 1 to December 31, 2018)(Percentages figure represent changes from same period of previous year.)Net sales

Ordinary income％¥ million％¥ million

Net income
per share

Net income％¥ million¥First half ending
Jun. 2018

1,600

8.6

260

13.2

176

14.5

18.31

Fiscal year ending
Dec. 2018

3,200

5.2

530

4.53604.137.32* Disclosure regarding execution of audit procedures
At the time of disclosure of this earnings report, audit procedures in accordance with the Financial
Instruments and Exchange Act are in progress.
Note to ensure appropriate use of forecasts, and other noteworthy items（Cautionary note on forward-looking statements and other information）

The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. Actualbusiness and other results may differ substantially due to various factors.
(Means of contents of supplementary material on earnings and earnings performance review)
The Company holds presentations for analysts regarding the six-month and year-end results.
Distributed presentation materials and audio recordings from performance reviews are available on theCompany’s website.

3Consolidated Financial Statements(1)Consolidated balance sheet(Thousands of yen)
Fiscal year ended

Fiscal year ended

December 31, 2016

December 31, 2017

(Assets)
Current assets
Cash and deposits

2,020,748

2,448,897

Notes and accounts receivable-trade503,588473,615Work in process

62,59650,182

Deferred tax assets

35,58527,816

Other

34,923－

51,134－

2,657,441

3,051,646

44,94345,696△18,957△15,322

25,98530,374

158,864

172,370△120,095△130,474

Tools, furniture and fixtures, Net

38,76941,896

Total Property, plant and equipment

64,75572,271Intangible assets
Goodwill

460,247

401,834

Software

84,54865,694

Software in progress
Other－
1,469

20,306
1,469

Total intangible assets

546,265

489,305

Investments and other assets
Investment securities

102,307

76,990Stock of affiliated company

2,360

2,360

Affiliated company investments

54,806

57,848

Guarantee deposits

100,80388,227

Deferred tax assets

67,39059,207

Other

18,621

18,343

Total investment and other assets

346,289

302,977

957,310864,5543,614,752

3,916,201

Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and accompanying
facilities
Accumulated depreciation
Buildings and accompanying
facilities, Net
Tools, furniture and fixtures
Accumulated depreciation

Total noncurrent assets
Total assets4

(Thousands of yen)
Fiscal year ended

Fiscal year ended

December 31, 2016

December 31, 2017

Liabilities
Current liabilities
Accounts payable-trade

228,415226,678

Income taxes payable

184,808

107,628

Accounts payable-other105,665

112,818

Advances received

128,502116,345

Provision for bonuses

18,21018,021

Other

90,181

101,067

Total current liabilities

755,783

682,559

Noncurrent liabilities
Deferred tax liabilities

4,286

4,199

Net defined benefit liability

14,707

16,505

Other

105,875

105,875

Total noncurrent liabilities

124,869

126,580

880,653

809,139

Net assets
Shareholders’ equity
Capital stock

382,510

382,510

Capital surplus

438,310438,310Retained earnings

1,981,430

2,352,553

Treasury stock△77,928△77,928

Total shareholders’ equity

2,724,322

3,095,444

△299

△182

10,076

11,798

9,776

11,616

Total net assets

2,734,098

3,107,061

Total net liabilities

3,614,752

3,916,201

Total liabilities

Accumulated other comprehensive income
Valuation difference on securities (otherthan subsidiaries and affiliatedcompanies)Currency adjustment accountTotal accumulated othercomprehensive income

5(2) Consolidated statements of income and consolidated statements of comprehensive income(Consolidated Statement of Income)(Thousands of yen)
Fiscal year ended

Fiscal year ended

December 31, 2016

December 31, 2017

Net sales

4,596,325

4,916,424

Cost of sales

2,810,356

2,898,392

Gross profit

1,785,968

2,018,031

Selling, general and administrative expenses

1,197,529

1,334,715

588,439

683,316

Non-operating income
Interest income

1,993

1,517

Dividends income

166

157

Investment gain by equity method

3,405

1,319

Other

1,532

803

Total non-operating income
Non-operating expenses
Interest expenses

7,097

3,798

－

8

Foreign exchange losses
Other

1,974
1,061

2,097
581

Total non-operating expenses

3,035

2,688

592,501

684,426

9,715
9,715

－－

144
11,712150
8,950

Total extraordinary loss

11,857

9,101

Income before income taxes

590,359

675,325

Income taxes-current

230,528

224,197

Income taxes-deferred△13,60917,217

Total income taxes

216,918

241,414

Net income

373,440

433,910

Profit attributable to owners of parent

373,440

33,910Operating income

Ordinary income
Extraordinary income
Compensation for transfer
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Office transfer expenses

6(3)Consolidated statement of cash flows(Thousands of yen)
Fiscal year ended

Fiscal year ended

December 31, 2016

December 31, 2017

Net cash provided by (used in) operating
activities
Income before income taxes

590,359

675,325

Depreciation and amortization

62,25659,988

Amortization of goodwill
Increase (decrease) in allowance for
doubtful accounts）
Increase (decrease) in provision forbonuses
Increase (decrease) in net defined benefit
liability
Interest and dividends income

30,94558,412

△4－

3,309

△189

△11,798△2,160△1,675－8Investment gain(loss) by equity method△3,405△1,319Loss on retirement of noncurrent assets

144

Interest expenses

Compensation for removal△9,715150－

Relocation expenses
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable-trade
Increase (decrease) in accrued
consumption taxesOther

11,712

8,950△92,770

17,815△30,565

12,413

9,332△1,737△19,119

8,206

32,17823,491

582,498

861,640

3,425

2,506

－
4,935

△8－

△8,737△6,496△230,068△321,524

352,052

536,116

SubtotalInterest and dividends income received
Interest expenses paid
Proceeds from compensation for removal
Payments for removal expenses
Income taxes paid
Net cash provided by (used in) operating
activities

7

(Thousands of yen)
Fiscal year ended

Fiscal year ended

December 31, 2016

December 31, 2017

Net cash provided by (used in) investment
activities
Purchase of property, plant and equipment△27,201△49,620

Purchase of intangible assets△26,953

Payments for transfer of business△34,538△30,579－

10,36023,017△266,707－△44,060△1,4002,346

13,112△1,500△600

79,711890△1,202△1,201△309,746△46,381－

50,000－△50,000△53,128△62,788△53,128△62,788△10,822426,946

1,982,360

1,971,537

1,971,537

2,398,484

Proceeds from redemption of securities
Purchase of shares of subsidiaries
resulting in change in scope ofconsolidation
Proceeds from collection of lease andguarantee deposits
Proceeds from collection of guarantee
deposits
Payments for insurance premium reserve
Proceeds from cancellation of insurance
funds
Payments into time deposits
Net cash provided by (used in) investment
activities
Net cash provided by (used in) financing
activities
Increase in short-term loans payable
Decrease in short-term loans payable
Cash dividends paid
Net cash provided by (used in) financing
activities
Increase (decrease) in cash and cash
equivalents
Opening balance of cash and cash
equivalents
Closing balance of cash and cash
equivalents

8